Bakkavor: announces major shareholder and directorate change

Reykjavik / IS. (bkg) On 12 January 2024, Island’s Bakkavör Group was informed that BP-PE5 L.L.C. – an affiliate of the Baupost Group – had sold its entire shareholding of 116,468,928 ordinary shares, representing 20.1 percent of the share capital in Bakkavör, to LongRange Capital Fund I L.P. and its affiliates.

Founded in 2019, LongRange was formed to take a longer-term perspective to investing and building middle market businesses through a company-focussed and customer-first philosophy. LongRange has over USD 1.7 billion in assets under management and employs a highly flexible and collaborative approach to partnering with management and other stakeholders.

Effective upon completion of the Transaction in this January, the Company’s relationship agreement with Baupost dated 10 November 2017 will terminate and Patrick Cook, Baupost’s nominated representative to the Company’s Board, will step down.

The Company has now entered into a relationship agreement with LongRange which will come into effect automatically upon completion of the Transaction (expected to be in this January). The Relationship Agreement will regulate the ongoing relationship between the Company and LongRange. The key terms of the Relationship Agreement will be made available on the Company’s investor relation website.

Pursuant to the Relationship Agreement, the Company also announces that Robert Berlin will be appointed as a non-independent non-executive Director of the Company’s Board, as LongRange’s representative, and such appointment will also become effective upon completion of the Transaction.

Robert Berlin previously served as a non-executive Director of the Company, from January 2016 until July 2018. Robert is a senior investment professional with investing and strategic operating experience across the consumer goods, food, manufacturing, technology and services sectors. He has helped management teams drive value creation through investments in innovation, accretive capital investments, new commercial relationships, data and analytics, organisational change and operational optimisation.

Simon Burke, Chairman: «Baupost has been a supportive shareholder in Bakkavor over many years and we wish them well. Patrick Cook was a very positive addition to our Board, giving us insight, good challenge and constructive debate. I would like to thank him for this on behalf of us all and wish him every success in the future». «In the meantime, I am delighted to welcome back Bob Berlin. He knows us and our markets very well, and I look forward to the Board having the benefit of his knowledge and energy once again.»

Mike Edwards, CEO, said «I would like to extend a warm welcome to Bob Berlin, who rejoins our Board representing LongRange. He has a deep understanding of our business as well as our markets and his experience will be invaluable as we continue to build positive momentum and deliver our strategic ambition.»

There are no further details to be disclosed pursuant to Listing Rule 9.6.13 in connection with Bob Berlin’s appointment. In accordance with section 430(2B) of the Companies Act 2006, no remuneration payment or payment for loss of office will be made to Patrick Cook in connection with the termination of his appointment.